Avoid these common mistakes when buying a home

Home buying can be a frustrating experience, but choosing a competent real estate agent to guide you through the process will likely save you time and money. Here are some tips to avoid costly mistakes.

1. Get pre-approved BEFORE you start your home search. Pre-approval will give you a realistic price point when viewing potential homes and puts you in a better position to make a serious offer.
2. Research the neighborhood. Learn about crime statistics, schools and amenities within your potential town.
3. Look beyond the décor. Focus on the structure itself, square footage and layout. Look beyond the taste of the current homeowner, and remember you are buying the actual house.
4. Never skip the inspection. Your home is likely the biggest investment you will ever make, a home inspection is necessary to ensure it is a sound structure or at the very least, make you aware of any defects.
5. Give yourself an out. Make sure there are contingencies (such as financing or inspection) in the contract so you can back out of the deal and recoup your deposit.
6. Don’t buy the most expensive house on the block. The lower home values around your property will negatively affect your property's value.
7. Keep resale value in mind. It may be difficult to envision selling a home that you have yet to live in, but remember to consider long-term property value, location and overall mass appeal, when viewing a potential home.

Call your local CENTURY 21® Office for knowledgeable sales professionals to guide you through your home buying experience.

Information acquired through C21 e-newletters.

Is the Real Estate Market returning to "Normal"?

The new data from the National Association of Realtors shows that home sales for the past 2 months are on the rise.  Low interest rates and Lower asking prices have first time home buyers making the move. 

What we are finding in this area is that a well priced home is receiving multiple offers shortly after the house comes on the market. The key to selling your home is still pricing for today's market.  The key to a purchase is research the recent sales in the area (your realtor can help you with that) and if the home is listed well make your offer accordingly.  Low Ball offers on a well priced home will be refused.

An experienced agent makes all the difference in the world in making the trasaction go smoothly. 

Thought You'd be Interested

Thought You'd be Interested- Recent sales in North Caldwell

Market conditions dictate list price

When you list your home you want to get the best possible price and that is what your listing agent wants too.  In the current market it is difficult to hit on the right number until the home has been shown and buyer and agent feedback is accumulated.  Even high end homes are affected and it is the listing agent's duty to analyze the data and explain the results to the seller in terms they can understand.

Our office currently has a listing on Eileen Dr. in the Park Ridge section of Cedar Grove that, historically speaking, should be in the million dollar price range.  Market conditions and buyer feedback have caused a major price reduction and this custom home with 4 bedrooms including a huge master suite, a massive great room with fireplace, dining room that currently houses a table for 14 and a finished basement complete with a full bath, bonus room, access to rear patio, family room and gourmet kitchen.  This home is now listed at $875,000.  

If you are thinking of listing your home, please keep current market conditions in mind when setting an asking price.  If you are buying a home remember that the listing agent should be on top of prices in the area and the home may be priced to sell in today's market.

If your interested in seeing this home on Eileen Dr. or any other home in the area, please let me know.

Has your listing expired?

In this market many houses come on the market and never sell, there are a number of reasons for this that can be overcome by your agent.  Market positioning is key, this means if your home is overpriced for the neighborhood you will not get the buyers you are looking for. Below is a check-list developed by Real Estate Marketing Experts that can help you discover the reason for your disappointment.  Go over it, answer the questions truthfully and if you have any questions or would like me to help make a marketing correction please feel free to contact me.

North Jersey Short Sales (Part 2)

Once you have decided to try to short sell your home call your lender and see if they have a pre-sale approval process.  Not all lenders do this but you can ask.  Most lenders will give you a short-sale information package to fill out.  This will include a hardship letter where you explain why you can no longer pay you mortgage, copies of the past 2 years income tax returns, a list of all outstanding debt, a list of all recurring payments you must make (utilities, water, groceries) pay stubs and other financial paperwork.  This package must be completely filled out and returned to the bank before you can accept an offer.  You can list your house with a realtor.  A short sale must be listed with a licensed real estate agent who has no relationship to the seller, all short sale transactions must be arm's length, which means that the seller, the agent and the buyer can have no relationship. 

North Jersey Short Sales (part 1)

If you are one of the many homeowners in North Jersey who is finding themselves underwater in their home you need help. Your first step should be to contact your lender and request a loan modification. If you really can't make your full mortgage payment every month and the recommended sales price of your home is less then you owe on it your bank may approve a reduction in your monthly payment. This is often the only help a distressed homeowner needs to move forward and continure living in their home.

If you are not approved for a modification and you can't make your mortgage payments you are risking foreclosure. In a foreclosure the mortgage holder takes the house back and you are forced to move. A possible alternative to foreclosure is short selling your home. In a short sale you maintain some control of the sale and the timing of your move.

If a short sale is the road you decide to travel keep in mind you will need a Real Estate Agent who is specially trained in short sales and a Real Estate Attorney who is experienced in the short-sale process.

I hold the SSFR designation which is the Short Sale and Forecloser Expert designation earned through the Board of Realtors. A short sale is anything but short and does have credit ramifications but in a desperate situation it is a viable alternative to foreclosure.

Selling your Home - Not Really

If your planning to sell your home there is one critical thing you have to remember from day one.  Your are not selling a home, your are selling a house.  The buyer needs to make it his home.  The memories and decor that make this house your home have to be packed away before you list your house.  Thinking of the property as your home once you decide to list will expose you to many problems.  Pricing is effected by this thought process, you really can't put a price tag on a home.  You need to remove your emotions and think of this as a business deal.  Your Real Estate Agent will give you advise as to price that will not include the value of the time you have spent in the home. 

My best advise is to not be home when the house is shown.  Buyers like to put their own spin on a house and if you cringe knowing they are taking out the shelves you so lovingly built into the nursery wall it may effect the way you negotiate a sale. 

You may have spent hours finding just the right color orange for the kitchen but the buyers want a green kitchen. 

Remember, you are selling a house not a home

Finding the Home Thats Right for You

With all the choices in today's market, how do you go about finding the right home? It seems the more research you do, the more confused you get.

It's important to understand your needs and plan for them. Know what you want in a home, what's important to you, and what you can live without. Many of us start out with a champagne taste and a beer pocketbook, so it's important to be realistic.

Where and what you buy will affect you for as long as you live in the house, If you make the wrong purchase that may seem like a very long time. Get your priorities in order before you start looking or even talk to a real estate broker or sales associate.

For first-time home buyers this is a new experience, so it's especially important to do your homework. Ask people who have previously purchase a home about their experience, but don't ask for advise.  Only you can know what you really want and how much you are willing to pay for it.  If you currently own a home, you know exactly what's lacking. You may need another bedroom or bathroom, or a good school nearby.

First, decide where you want to live. A big part of the answer hinges on where and how you earn a living. If your job requires a lot of reading or is quite stressful, public transportation may offer valuable time to sit quietly. Regardless, you should practice the commute at the time you would be traveling before you make a commitment. A 15 minute drive on a Sunday afternoon may be a 60 minute stop and go during rush hour.

People with children have other major considerations: school and safety. If you plan to send your children to private schools, you can live where you want assuming you can easily arrange transportation. Call the local Board of Education and arrange a tour of the school you children will attend, preferably during school hours.

Obviously, lifestyle is an important consideration. People who frequently dine out, go dancing and attend the theater probably belong in the city or a close-in suburb,  make sure you're in close proximity to the things that matter most.

It used to be that homes came in a limited variety, but today, you have many choices. In addition to the traditional single-family home, you can buy a townhouse, condominium or apartment condominium or co-op. 

In condos and other such communities, make sure the rules and regulations, as well as the by-laws, match your lifestyle. This type of housing is great for people who want to own their own space without being responsible for mowing the lawn or repairing the roof; a management company handles that.

On the other hand, you'll pay fees for these services. In addition to checking the documents and financial soundness of the homeowner's association, you must determine if the monthly fees are worth the services and additional amenities such as a swimming pool or exercise room. Another consideration, if you are using an FHA mortage is if the develpment is FHA approved.  Not all complexes qualify for FHA funding.

Affordability can be a factor not only in the type of housing, but whether it's new or an existing home. Old houses often have fine woodwork or interesting nooks and crannies not normally found in new homes. They generally sit on landscaped lots with mature trees and grown bushes.

New homes may cost more, but you can make many more decisions on amenities, colors, carpeting and fixtures. Make sure you're dealing with a reputable builder, and have an attorney review all documents,

Selecting a real estate professional is an important first step in beginning your search. Ask for personal recommendations to find an individual who is knowledgeable about the neighborhood and has access to the local Multiple Listing Service. Make sure you feel confident about his or her knowledge and skills, and understand the business relationship that you have established between you.

If you are searching for a home in the Northern NJ area I would be happy to help.

Gail Vinnal                                                                  Accredited Buyer Representative (ABR)